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By: Ben Mathis
The FDIC continues to file a number of claims around the country against directors and officers of failed financial institutions. Recent decisions in Georgia, however, have raised the bar in holding that the business judgement rule requires the FDIC to prove gross negligence, as opposed to ordinary negligence, which is a much higher burden of proof.
The FDIC is not going away easily, however, and is appealing the issue to the Eleventh Circuit. The outcome is very important not just for financial institutions, but for directors and officers of any corporation. For a summary of recent D&O claims involving the FDIC and status, please see the attached link:
PLAN Spotlight: FDIC D&O Litigation